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please explain the above clearly along with the answer Award: 10.00 points The following table shows an abbreviated income statement and balance sheet for Quick
please explain the above clearly along with the answer
Award: 10.00 points The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) Net sales $ 27,567 Costs 17,569 Depreciation 1,402 Earnings before interest and taxes (EBIT) $ 8,596 Interest expense 517 Pretax income 8,079 Federal taxes (@ 21%) 1,697 Net income $ 6,382 2019 2018 $ $ 3,403 3,403 $ 367 3,143 $ 3,510 Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Fixed assets Property, plant, and equipment Intangible assets (goodwill) Other long-term assets Total assets BALANCE SHEET OF QUICK BURGER CORP., 2019 (Figures in $ millions) 2019 2018 Liabilities and Shareholders' Equity Current liabilities $ 2,336 $ 2,336 Debt due for repayment 1,375 1,335 Accounts payable 122 117 Total current liabilities 1,089 616 $ 4,922 $ 4,404 Long-term debt $ 24,677 $22,835 Other long-term liabilities 2,804 2,653 Total liabilities 2,983 3,099 Total shareholders' equity $35,386 $32,991 Total liabilities and shareholders' equity $ 13,633 3,057 $ 20,093 15,293 $ 35,386 $12,134 2,957 $18,601 14,390 $32,991 In 2019 Quick Burger had capital expenditures of $3,049. a. Calculate Quick Burger's free cash flow in 2019. (Enter your answer in millions.) Free cash flow $ 4,513 million b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.) (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places) Additional tax million c. What would the company's free cash flow have been if it was all-equity financed? (Enter your answer in millions.) Free cash flow $ 4,513 References Section: 3.3 The Statement of Cash Flows Worksheet Learning Objective: 03-03 Explain why income differs from cash flow. Difficulty: 2 Medium Section: 3.2 The Income StatementStep by Step Solution
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